Literature on consumers’ ethical decision making is rooted in a rationalist perspective that emphasizes the role of moral reasoning. However, the view of ethical consumption as a thorough rational and conscious process fails to capture important elements of human cognition, such as emotions and intuitions. Based on moral psychology and microsociology, this paper proposes a holistic and integrated framework showing how emotive and intuitive information processing may foster ethical consumption at individual and social levels. The model builds on social intuitionism (...) to show how consumers’ a priori affect-laden intuitive moral judgments impact their post hoc reflective moral reasoning. Symbolic interactionism is used to interpret consumers as interdependent and socially embedded agents that self-construct their social identity through interactions with other consumers. The proposed social intuitionist framework of consumers’ ethical decision making shows that other-oriented moral emotions—such as elevation, gratitude, and empathy—interact with persuasion and social influence in ethical consumption. Consequently, moral emotions and intuition drive interpersonal persuasion among ethical consumers. Theoretical propositions and implications for consumer ethics theory and practice are discussed. (shrink)

Ideally, pro-environmental consumer behavior leads to a lower impact on the environment. However, due to negative behavioral spillovers environmentally friendly behavior could lead to an overall higher environmental impact if subsequent environmentally unfriendly behavior occurs. In this exploratory interview study we focused on two pathways leading to negative spillover: a psychological path and an economic path. We wanted to gain insight into people’s motivations to behave environmentally unfriendly and to explore people’s level of awareness of both pathways. Our results (...) indicate that pro-environmental behaviors that are associated with higher effort are performed less frequently, and that when people do not perform these behaviors they associate them with higher effort levels. When people perceive behaviors as more effortful they increasingly seem to use arguments to motivate and rationalize why performing the behavior is difficult or impossible. Moreover, we found that although some people can imagine that moral licensing and rebound effects could occur and can provide examples from their own lives, most people assess these concepts as not rational. People seem unaware of the relation between a first pro-environmental behavior and a subsequent behavior, and therefore inconsistencies in behavior go unnoticed. As people are good at rationalizing why they do not perform specific PEBs, they in general feel satisfied with their own pro-environmental actions. In order to discourage negative spillovers, we describe a number of approaches and research ideas aimed at taking away the grounds for rationalization. (shrink)

In the paper we analyze the educational rationality closely associated with a neoliberal cultural logic that causes various lifestyles which seek only the satisfaction of unreal or symbolic needs where the ideal of education appears as one more among others. Furthermore, we consider educational policies subordinated to an expansive cultural logic of post-industrial capitalism, having as a historical reference the neoliberal turn of the Peruvian educational policy and a symbolic structure deeply established in the psyche of the society transformed (...) by the social pathologies of mercantilism and consumerism. This insight will allow us to propose a socio-philosophical critique of postmodernity. (shrink)

The American Journal of Bioethics, Volume 11, Issue 7, Page 16-18, July 2011.

To better understand the purchasing decision-making process of humane pork, and examine the internal relationship between consumers’ preferences in rational consumption and irrational decoy scenarios, 405 consumers in Wuxi City, Jiangsu Province, and China were surveyed. Attributes were set for breeding time, breeding mode, diet cleanliness label, and price, and the first three among them reflect animal welfare conditions. The results show that in the rational consumption scenarios, consumers pay the most attention to the price attribute, followed by the attribute (...) of diet cleanliness label, breeding mode, and breeding time. In the irrational decoy scenarios, consumers are most likely to be affected by the attribute decoy of diet cleanliness label, which have the utility of avoiding food safety risks. In addition, the decoy effect triggered by the price attribute which owned the highest degree of rational preference among consumers is also substantially higher, but lower than that of the diet cleanliness label attribute. The decoy effect caused by the breeding time attribute with the lowest degree of consumers’ rational preference is also the lowest. Therefore, the government should strengthen the publicity of the humane treatment of pigs before slaughter, and improve the certification and management system of pigs’ diet cleanliness. Besides, marketers are suggested to emphasis the product attributes that customer’s value the most in their advertising. (shrink)

Consumers have subjective psychological expectations of the quality and brand of products before purchasing. There is a certain tolerance for products that do not meet expectations. The discomfort caused by tolerance can be smoothly carried out through “reasonable” self-comfort and explanation mechanisms. Based on the theory of rationalization defense mechanism, a 2 × 2 purchase channel matrix of online and offline purchase, online consultation, and the offline experience was constructed to explore the influence of consumers’ tolerance of product quality and (...) brand on their purchase channel choice. The results show that: consumer product tolerance positively influences consumers’ online purchasing choice; consumer product tolerance influences purchase channel choice through rationalization; and the sweet lemon mechanism mediates consumer product tolerance on online consultation and online purchase and offline experience, but the sour grapes mechanism does not mediate. (shrink)

This article examines the way advertising was rationalized in the early twentieth-century United States. Drawing on a targeted archival comparison with the United Kingdom, I show how the extensive mobilization undertaken to legitimate and rationalize advertising, rather than changes in the techniques employed in the content of ads themselves, were seen by actors in the mid-1920s to explain most of the extraordinary advances made by American advertising. Building on that comparison, I show how American advertising was transformed, particularly around World (...) War I, into a legitimate profession situated at the center of a network of expertise about consumers and their media. Under the banner of “truth in advertising” ads came to be regarded as a legitimate, rational, and sustained business investment, leading to an enormous increase in aggregate expenditures. I argue that future research should examine how this process fuelled mass media and contributed to the conditions for modern consumerism. (shrink)

Hoy nos movemos en un mundo altamente cambiante y atestado de desarrollo científico, técnico y tecnológico. Un mundo condicionado por los intereses de una globalización económica, donde el imperativo es consumir, y donde aquellos que producen de manera individual y distinta son absorbidos, en el mejor de los casos, o anulados por el sistema capitalista. Ahora bien, ese estado de cosas ha puesto en riesgo de pérdida al sujeto racional heredado y caracterizado desde la modernidad y que es requerido hoy (...) día como sujeto de racionalidad tecnológica. El sujeto-persona-agente racional se encuentra en una encrucijada ante la sociedad de consumo y el sistema económico de producción. La encrucijada consiste en si sigue aceptando el ser considerado y utilizado como un objeto, cosa, instrumento, artefacto más dentro del sistema artefactual o recobrar la capacidad de racionalidad, heredada desde la Modernidad y refrendada como racionalidad tecnológica desde la Revolución Industrial. (shrink)

This article presents two studies that examine cause-related marketing promotions that require consumers’ active participation. Requiring a follow-up behavior has very valuable implications for maximizing marketing expenditures and customer relationship management. Theories related to ethical behavior, like motivated reasoning and defensive denial, are used to explain when and why consumers respond negatively to these effort demands. The first study finds that consumers rationalize not participating in CRM by devaluing the sponsored cause. The second study identifies a tactic marketers can utilize (...) to neutralize consumers’ use of defensive denial. Allowing the consumer to choose the sponsored cause seems to effectively refocus their attention and increases consumers’ threshold for campaign requirements. Implications for nonprofits and marketing managers include a tendency for consumers to be more likely to perceive a firm as ethical and socially responsible when they are allowed to choose the specific cause that is supported. (shrink)

The response of consumers to a firm’s ethical behavior and the underlying factors influencing/forming each consumer’s response outcome is analyzed in this article based on information obtained through interviews. The results indicate that, in the Chinese context, the responding outcome can be boiled down to five types, namely, resistance, questioning, indifference, praise, and support. Additionally, consumers’ responses were mainly influenced by the specific consumer’s ethical consciousness, ethical cognitive effort, perception of ethical justice, motivation judgment, institutional rationality, and (...) corporate social responsibility–corporate ability (CSR–CA) belief. Based on these results, a generalized framework of consumer’s ethical responses is developed which provides a number of insightful suggestions upon how to motivate a consumer’s support of a firm’s ethical behavior and to transfer this kind of support into truly positive purchasing behavior. (shrink)

Consumers can have difficulty expressing their buying intentions on an explicit level. The most common explanation for this intention-action gap is that consumers have many cognitive biases that interfere with decision making. The current resource-rational approach to understanding human cognition, however, suggests that brain environment interactions lead consumers to minimize the expenditure of cognitive energy. This means that the consumer seeks as simple of a solution as possible for a problem requiring decision making. In addition, this resource-rational approach to (...) decision making emphasizes the role of the principle of Occam’s Razor, inductive inference, and Bayesian reasoning by illuminating the human-environment relationship. This paper introduces the Consumer Contextual Decision-Making Model (CCDMM). Based on the CCDMM, two hypothetical strategies of consumer decision making will be presented. First, the SIMilarity-Strategy (SIMS) is one in which most of a consumer’s decisions in a real-life context are based on prior beliefs about the role of a commodities specific to real-life situation being encountered. Because beliefs are based on previous experiences, consumers are already aware of the most likely consequences of their actions. At the same time, they do not waste time on developing contingencies for what, based on previous experience, is unlikely to happen. Second, the What-is-Out-there-in-the-World-Strategy (WOWS) is one in which prior beliefs do not work in a real-life situation, requiring consumers to update their beliefs. The principle argument being made is that most experimental consumer research describes decision making based on the WOWS, when participants cannot apply their previous knowledge and situation-based strategy to problems. The article analyses sensory and cognitive biases described by behavioral economists from a CCDMM perspective, followed by a description and explanation of the typical intention-action gap based on the model. Prior to a section dedicated to discussion, the neuroeconomic approach will be described along with the valuation network of the brain, which has evolved to solve problems that the human has previously encountered in an information-rich environment. The principles of brain functions will also be compared to CCDMM. Finally, different approaches and the future direction of consumer research from a contextual point of view will be presented. (shrink)

Decision-making regarding healthcare expenditure hinges heavily on an individual's health status and the certainty about the future. This study uses data on propensity of general health exam (GHE) spending to show that despite the debate on the necessity of GHE, its objective is clear—to obtain more information and certainty about one’s health so as to minimise future risks. Most studies on this topic, however, focus only on factors associated with GHE uptake and overlook the shifts in behaviours and attitudes regarding (...) different levels of cost. To fill the gap, this study analyses a dataset of 2068 subjects collected from Hanoi (Vietnam) and its vicinities using the baseline-category logit method. We evaluate the sensitivity of Vietnamese healthcare consumers against two groups of factors (demographic and socioeconomic-cognitive) regarding payment for periodic GHE, which is not covered by insurance. Our study shows that uninsured, married and employed individuals are less sensitive to cost than their counterparts because they value the information in reducing future health uncertainty. The empirical results challenge the objections to periodic health screening by highlighting its utility. The relevance of behavioural economics is further highlighted through a look at the bounded rationality of healthcare consumers and private insurance companies in using and providing the service, respectively. (shrink)

Modern consumers face a dramatic rise in web-based technological advancements and have trouble making rational and proper decisions when they shop online. When they try to make decisions about products and services, they also feel pressured against time when sorting among all of the unnecessary items in the flood of information available on the web. In this sense, they need to use consumer decision-making creativity to make rational decisions. However, unexplored research questions on this subject remain. First, in what (...) ways do task difficulty and time constraints affect visual attention on exploitative and exploratory activities differently? Second, how does the location of the reference influence the level of visual attention to exploitative and exploratory activities depending on affordance theory? Third, how do exploratory and exploitative activities affect CDMC? Eye-tracking experiments were conducted with 70 participants to obtain relevant metrics such as total fixation duration, fixation count, and visit count to answer these research questions. Our findings suggest that task difficulty influences exploitative activity, whereas time constraint is related to the exploratory activity. The result of the location of hints aligns with the affordance theory for the exploitative activity. Besides, exploratory activity positively affected CDMC, but exploitative activity did not show any effect. (shrink)

As health care costs continue to escalate, cost control measures will likely become unavoidable and painful. One approach is to engage external forces to allocate resources - for example, through managed care or outright rationing. Another approach is to engage consumers to make their own allocation decisions, through "self-rationing," wherein they are given greater awareness, control, and hence responsibility for their health care spending. Steadily gaining popularity in this context is the concept of "consumer directed health care" (CDHC), which (...) is envisioned to both control cost and enhance choice, by combining financial incentives with information to help consumers make more informed health care decisions and to appreciate the economic trade-offs of those decisions. While CDHC is gaining attention in the popular press, business publications, and academic journals, it is not without controversy about its relative merits and demerits. CDHC raises questions regarding the ethical limits of consumer responsibility for their choices. While the emphasis on consumer choice implies that autonomy is the ruling ethical principle in CDHC, it must be tempered by justice and beneficence. Justice must temper autonomy to protect disadvantaged populations from further widening disparities in health care access and outcomes that could arise from health care reform efforts. Beneficence must temper autonomy to protect consumers from unintended consequences of uninformed decisions. Thoughtful paternalism suggests that CDHC plans offer choices that are comprehensible to lay consumers, limited in their range of options, and carefully structured with default rules that minimize potential error costs. (shrink)

The paper argues against a widely held synchronic view of emotional rationality. I begin by considering recent philosophical literature on various backward‐looking emotions, such as regret, grief, resentment, and anger. I articulate the general problem these accounts grapple with: a certain diminution in backward‐looking emotions seems fitting while the reasons for these emotions seem to persist. The problem, I argue, rests on the assumption that if the facts that give reason for an emotion remain unchanged, the emotion remains fitting. (...) However, I argue there are rationally self‐consuming attitudes: affective attitudes that become less fitting the longer they endure while the facts that give reason for them persist. A widely held synchronic view of fitting affective attitudes denies that fittingness at a time depends on the agent's attitudes at different times and therefore denies that the fittingness of an affective attitude can depend on its duration. Once we reject the synchronic view, we may see that affective attitudes are often fitting due to the fitting processes of which they are part. These fitting processes explain the fitting diminution of backward‐looking emotions as well as other diachronic aspects of the fittingness of emotions. -/- . (shrink)

Consumer driven and globally competitive financial markets are crucial for the future prosperity of the Finnish society (Laitamäki, Lehti and Paasio 1996). The largest transfer of wealth in history is currently taking place as Baby Boomers (born 1946-1964) prepare for their retirement and inherit the assets of the previous generation. Due to cognitive limitations and emotional biases these consumers don’t always make rational decisions with financial services. This conceptual study addresses irrational financial consumer behavior and its impact on (...) the Finnish business and society. The study focuses on two research questions: 1) What type of behavioral finance concepts explain irrational consumer behavior? 2) What are the implications of these behaviors for the Finnish business and society? The purpose of this study is to assist individual consumers, business leaders and policy makers in making better financial services related decisions in Finland. The need for better decisions has been illustrated during Finnish and international financial crises including the US sub-prime loan turmoil in 2008. (shrink)

We present a rational model of consumer choice, which can also serve as a behavioral model. The central construct is λ\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$$\lambda $$\end{document}, the marginal utility of money, derived from the consumer’s rest-of-life problem. It provides a simple criterion for choosing a consumption bundle in a separable consumption problem. We derive a robust approximation of λ\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$$\lambda $$\end{document} and show how to incorporate (...) liquidity constraints, indivisibilities, and adaptation to a changing environment. We find connections with numerous historical and recent constructs, both behavioral and neoclassical, and draw contrasts with standard partial equilibrium analysis. The result is a better grounded, more flexible, and more intuitive description of consumer choice. (shrink)

Governments, producers, and international free tradeorganizations like the World Trade Organization (WTO) areincreasingly confronted with consumers who not only buy (or don'tbuy) goods, but also demand that those goods are producedconforming to certain ethical (often diverse) standards. Not onlysafety and health belong to these ethical ideals, but animalwelfare, environmental concerns, labor circumstances, and fairtrade. However, this phantom haunts the dusty world of social andpolitical philosophy as well. The new concept ``consumersovereignty'' bypasses the conceptual dichotomy of consumer andcitizen.According to the (...) narrow liberal response to this newconstellation, with respect to food one should conceptualizeconsumer sovereignty as the right of the individual consumer toget information on food products and to make his or her ownchoice on the market of food products. In this conception, thereis a very strong emphasis on rules and principles with respect tothe autonomy of individuals.I argue that these narrow liberal concepts are not sufficient forappropriate public policy-making in democratic societies, andthat they only enable us to identify problems; they do not helpnon-experts (and experts, if it comes to that, as well) inweighing the different ethical claims. Besides, not onlyprinciples play a role in the outcome, but all kinds of ideals aswell, like roles, values, and norms. My principal argument isthat analysis or justification of norms or principles is notsufficient to get a synthesis or construction of ethicalsolutions: we need some value orientation to guide us inbalancing the different ethical claims by solving an ethicalproblem. Moreover, this balancing is something that requiressocial space and social time, i.e., public debates. With theconcept of public debates a whole new dimension enters ethicalanalysis, because the attention of ethicists shifts toformulating criteria of successful and rational public debates.However, in the broad liberal view these concepts aresupplemented with values, preferences, practices of care, andinvolvement. I argue firstly for a broadened perspective on foodas an integral part of life styles and not only as something thatpresents risks. That is the reason that food gets such intensiveattention from the public, which is summarized in the concept ofconsumer concerns. Secondly, I defend the argument that not only(rational) public debates, but intensive commitments of bothproducers and consumers in every link of the chain in so calledcare practices or consumer councils can enhance confidence in thefood production system and the way we extract our daily intakefrom nature. (shrink)

With the continuous development and improvement of Internet media technologies in China, the influence of livestream e-commerce is becoming increasingly prominent, and an increasing number of people are engaging in consumption activities in this field. It is important to study consumer stickiness in livestream e-commerce to promote economic structure adjustment and innovation-driven development. Therefore, in this study, we adopted the expectation confirmation theory as the theoretical framework and analyzed the ECT and stickiness. The study considered satisfaction as the previous (...) influencing factor of user and consumer stickiness, replaced the continuance intention in the expectation confirmation model with consumer stickiness as the explanatory variable, introduced the variable of perceived playfulness as the value perception after user experience, and established a consumer stickiness factors model. A total of 262 valid questionnaires were collected in this study, and SmartPLS analysis along with interviews were used to justify the limitations of data analysis. The results of the study demonstrated a significant effect of perceived usefulness and confirmation on satisfaction, a significant effect of confirmation on perceived usefulness, a significant effect of satisfaction on stickiness, and a significant effect of confirmation on perceived playfulness. Based on findings from the data analysis and interviews, we further proposed rationalized recommendations, and aimed to provide some theoretical guidance for future research on live streaming. (shrink)

The article deals with a role of mass culture in term of the theory of the culture industry by M. Horkheimer and T. Adorno and the theory of communicative action by J. Habermas, who continues research of the Frankfurt school. It is known that Habermas says about two types of rationality — communicative and structural. The lifeworld and the system correspond them. Usually, culture correspond to lifeworld because it helps people`s socialization. Also it is a place for communication and (...) finding new meanings. However, a place of mass culture is very controver- sial. In particular, it is necessary to distinguish between popular and mass culture, because these definitions have been used as interchangeable for a long time. Popular culture is still an area of meanings. Moreover, it has the potential for protest. From this point of view, it is clearly part of the life world. But mass culture as a «cultural industry» is not so unambiguous. It is worth considering its characteristics and role in people’s life more detail. Above all, one cannot help paying attention to masses. Already in the last century, H. Arendt characterized them as an atomized and isolated group of people, and they are not united by any common ideas. After all, even in the modern world it is possible to see that they do not have and do not want to search for any ideas or meanings. Masses are a direct consumers of mass culture. It is consumerism that the characteristic feature of modernity. Therefore, mass culture is inseparably connected with the market. On the one hand, it sells entertainments, and on the other hand, it generates new consumers, because it is related to advertising. In the same way, mass culture is connected with agitation and propaganda. Thus, it is possible to speak about its connection with politics. The market and politics correspond to the system and are guided by strategic rationality. This fact gives reason to talk about mass culture as a strategic tool. Such culture with no meanings leads to a crisis in society. (shrink)

Decision theory seems to offer a very attractive normative framework for individual and social choice under uncertainty. The decisionmaker should think of her choice situation, at any given moment, in terms of a set of possible outcomes, that is, specifications of the possible consequences of choice, described in light of the decisionmaker's goals; a set of possible actions; and a "state set" consisting of possible prior "states of the world." It is this framework for choice which provides the foundation for (...) expected utility theory, as demonstrated in the work of Leonard Savage. Problems arise, however, when the decisionmaker is boundedly rational: when the mental process of thinking about outcomes, actions, and states is itself expensive and time consuming. In the case of the unboundedly rational decisionmaker, decision theory enjoins her to employ maximally specific outcomes; to consider all possible actions; and to use a set of mutually exclusive and collective exhaustive states, each of which is sufficiently finely specified so that each action, together with each state, yields one and only one maximally specific outcome. In the case of the boundedly rational decisionmaker, this procedure is either infeasible or, if feasible, irrational. This paper presents the problem of bounded rationality. It surveys possible solutions, none of which are found to be attractive. And it concludes by discussing the difficulties that the problem of bounded rationality poses for the welfarist program for legal scholarship presented by Louis Kaplow and Steven Shavell in their book, Fairness versus Welfare. (shrink)

We argue that consumer sovereignty in an increasingly high tech world is more of a fiction than a fact. We show how the principle of consumer sovereignty that governs the societal impact of economic competition is no longer valid. The world of high tech is increasingly responsible for changes in the opportunity, ability, and motivation of business firms to compete. Furthermore, the world of high tech is increasingly responsible for changes in the opportunity, ability, and motivation of consumers (...) to engage in rational decision making. We conclude that we cannot rely on consumer sovereignty to maintain a thriving economy. Instead, we need to develop performance standards designed to meet the demands of the various stakeholders of the organization. (shrink)

Discussions surrounding patient engagement and empowerment often use the terms “patient” and “consumer” interchangeably. But do the two terms hold the same meaning, or is a “patient” a passive actor in the health care arena and a “consumer” an informed, rational decision-maker? Has there been a shift in our usage of the two terms that aligns with the increasing commercialization of health care in the U.S. or has the patient/consumer dynamic always been a part of the buying (...) and selling of health care in the American system? Recent discussions of the issue exist in the popular press and in social media forums such as TEDMED, but few direct analyses of the ethical, legal, and policy ramifications of this possible shift in terminology are available in the academic literature. This paper analyzes our usage of the terms and any recent changes in the dynamic and discusses the ethical, legal, and policy implications of this simple terminology for the physicianpatient relationship. (shrink)

Digital piracy as a continuing problem significantly impacts various stakeholders, including consumers, enterprises, and countries. This study develops a three-level mechanism of determinants of consumer digital piracy behavior, with personal risk as an individual factor, susceptibility to interpersonal influence as an inter-personal factor, and moral intensity as a broad societal factor. Further, it explores the role of rationalization and future piracy intent as outcomes of past piracy behaviors. The authors use survey data from four countries in the European Union (...) to test the system of structural relationships. With an exception of the effect of consumers’ susceptibility to interpersonal influence on piracy behavior, the conceptual model receives remarkably consistent support across the four countries. Specifically, perception of personal risk and moral intensity negatively affected the reported piracy behavior in all four countries. The results further support the negative influence of moral intensity and the positive influence of past digital piracy behavior on consumers’ use of rationalization. Lastly, personal risk, rationalization, and past digital piracy behavior directly influenced consumers’ intention to engage in digital piracy in the future. The study also discusses implications of the findings and identifies areas of future research. (shrink)

The article analyses the common notion that the consumer society is a reflection of those principles in the market that also provide the ideas of democracy and liberal constitutionalism with legitimacy in the political realm. The inalienable right to self-development and self-determination makes the individual the starting and ending point of life, rendering all spheres of market and society a ‘republic of choice’. But if consumer society shares the essentials of liberal constitutionalism and the rational, processual nature of (...) democratic representation, then its ontology needs to be investigated for the same reason and in the same manner as legal and political philosophy dissects the legitimacy and validity of the parliamentary institutions of modern democracy. Just as in the political philosophy of the constitutional structure of the democratic state, the question of who is sovereign is key to understanding the ontology of consumer society. But rather than simply placing sovereignty into the hands of the independent, self-determined consumer, the earliest ontologists of the consumer society took recourse to medieval political theology and presented the consumer market as a new corpus mysticum. Thus, it is medieval political theology, not modern liberal thought, which provided for an ontologization of the consumer. This, in turn, directly pertains to the questions of the legitimacy of consumer society per se, of consumer decisions in particular and of their sources of legitimacy. (shrink)

Rational Risk Policy is based on Viscusi's Arne Ryde Memorial Lectures, delivered at Lund University in 1996. The organizing principle of these lectures is that the irrationality of individual decisions is often embodied in government regulations. Rather than overcoming the inadequacies in individual risk beliefs and behaviour, governmental regulations often institutionalize them. Viscusi examines how consumers and workers perceive risk and the implications of these risk beliefs and behavioural responses to risk for government policy. Hazard warnings efforts, direct regulation, and (...) liability are among the alternative modes of intervention. The role of risk tradeoffs with respect to the value of life as well as the consequences of wasteful regulatory expenditures are considered in a discussion of riskrisk analysis. Rational Risk Policy also includes a critique of the risk analysis practices used by government agencies as well as a consideration of how liability and social insurance should be integrated into a rational risk management strategy. (shrink)

This paper is designed to help people rationally engage moral issues regarding the treatment of animals, specifically uses of animals in medical and psychological experimentation, basic research, drug development, education and training, consumer product testing and other areas.

There is a collection of exogenously given socially feasible sets, and, for each one of them, each individual in a group chooses from an individually feasible set. The fact that the product of the individually feasible sets is larger than the socially feasible set notwithstanding, there arises no conflict between individual choices. Assuming that individual preferences are random, I characterize rationalizable collective choices.

Our present knowledge in the field of dynamical systems, information theory, probability theory and other similar domains indicates that the human brain is a complex dynamical system working in a strong chaotic regime in which random processes play important roles. In this environment our mental life develops. To choose a logically ordered sequence from a random or almost random stream of thoughts is a difficult and energy consuming task. The only domain in which we are able to do this with (...) a full success is mathematics. Leibniz’s life ambition was to extend this success, with the help of what he called _characteristica universalis_, to other areas of human activity. The belief that this is possible lies at the basis of Leibniz’s rationalist system. Reasoning within his system, Leibniz claimed that also fundamental laws of physics can be deduced from the “first principles”. Just as linguistic or conceptual units are at the basis of the _charactersistica universalis_, his monads are responsible for physical activity of material bodies. When this rationalistic strategy is applied to the philosophy of space and time, it leads to their radically relational conception. Leibniz’s rationalistic approach to philosophy and science arouses out sympathy but it was Newton’s mathematical-empirical method that turned out to be effective in human endeavour to understand the functioning of the physical world. Successes of the Newtonian method compel us to revise our concept of rationality. (shrink)

We often have affective responses to fictional events. We feel afraid for Desdemona when Othello approaches her in a murderous rage. We feel disgust toward Iago for orchestrating this tragic event. What mental architecture could explain these affective responses? In this paper I consider the claim that the best explanation of our affective responses to fiction involves imaginative desires. Some theorists argue that accounts that do not invoke imaginative desires imply that consumers of fiction have irrational desires. I argue that (...) there are serious worries about imaginative desires that warrant skepticism about the adequacy of the account. Moreover, it is quite difficult to articulate general principles of rationality for desires, and even according to the most plausible of these possible principles, desires about fiction are not irrational. (shrink)

The theme of this issue of the St. Gallen Business Review is "Harmony". For this reason, we would like to discuss whether two aspects of our life- world are in harmony, namely economic optimization and morality. What is the relation between them? According to a widely shared view, which is one aspect of the doctrine of "mainstream economics", the functioning of an economic system does not require moral behaviour on the part of the individual economic agent. In what follows, we (...) will try to convince you that this is false. If all economic agents – managers, employees, bankers, consumers and so on – were purely self-interested, as mainstream economics assumes, our economic practice would fail. There are various reasons for this. Here we will focus on one of them, namely the pivotal role of interpersonal communication. (shrink)

Consumer actions towards multinationals encompass not just expressions of dissatisfaction and ethical identity but also what are problematically termed ‘instrumental actions’ entailing perceived purposes and likely impacts. This term may seem inappropriate where insufficient information exists for instrumentally linking means to ends, yet we consider it useful for describing purposive consumer action in its subjective aspect because it reflects the psychological reality whereby complexity-reducing social constructions give consumer actions instrumentally rational form for purposes of meaningful understanding and (...) justification. This paper is particularly concerned to explore the complexities of cause and intention—particularly ethical intention—which are thus reduced. In particular, it considers complex interaction between individual ethical values, demographic factors and contexts of societal practice. It seeks to highlight primary antecedents among these interactants in order to guide both consumers and multinationals in their complexity-reducing social constructions to improve their fit to true causes and intentions. Study 1 involved 606 United Kingdom nationals, while study 2 involved 2561 individuals from 15 nations. Both sets of findings link higher personal income levels to propensity to engage in instrumental actions towards multinationals. Overwhelmingly, however, individual ethical values seem to matter most, irrespective of demographic or cultural contexts. These findings suggest that both consumers and multinationals engaged in ethical dialogue with consumers are best advised to articulate a universalising and not culturally or nationally bound ethical intelligence, which speaks directly to conscience within a global ethical discourse. (shrink)

A significant body of research concludes that stable beliefs of perceived consumer effectiveness lead to sustainable consumption choices. Consumers who believe that their decisions can significantly affect environmental and social issues are more likely to behave sustainably. Little is known, however, about how perceived consumer effectiveness can be increased. We find that feelings of guilt and pride, activated by a single consumption episode, can regulate sustainable consumption by affecting consumers’ general perception of effectiveness. This paper demonstrates the impact (...) that guilt and pride have on perceived consumer effectiveness and shows how this effect rests on the ability of these emotions to influence perceptions of agency. After experiencing guilt or pride, consumers see themselves as the cause of relevant sustainability outcomes. The process of causal attribution associated with these emotions influences consumers’ use of neutralization techniques. Through the reduction in consumers’ ability to neutralize their sense of personal responsibility, guilt and pride positively influence perceived consumer effectiveness. The inability to rationalize-away their personal responsibility, persuades consumers that they affect sustainability outcomes through their decisions. The research advances our understanding of sustainable consumption and identifies a new avenue for the regulation of individual consumer behavior that has significant implications for the development of sustainable marketing initiatives. (shrink)

I am interested in the “rational irrationality hypothesis” about voter behavior. According to this hypothesis, voters regularly vote for policies that are contrary to their interests because the act of voting for them isn’t. Gathering political information is time-consuming and inconvenient. Doing so is unlikely to lead to positive results since one's vote is unlikely to be decisive. However, we have preferences over our political beliefs. We like to see ourselves as members of certain groups (e.g. “rugged individualists”) and being (...) part of those groups depends on having certain beliefs (e.g. about welfare spending). Even if a decrease in welfare spending would be bad for me, I might still benefit by believing in and, consequently, voting for a decrease since my vote is unlikely to make a difference but getting to see myself as a rugged individualist will make a noticeable difference to my wellbeing. It is sometimes argued that this hypothesis fails for empirical reasons. I will argue that things are worse: it is conceptually incoherent. I will do so by first showing that it is a rationalizing explanation and then argue that rationalizing explanations must be reflectively stable from the agent's perspective. The rational irrationality hypothesis is not. (shrink)

The present volume is a product of an international research program 'Foundations of Science and Ethics', launched in 1976 by the Inter University Centre of Post-Graduate Studies, Dubrovnik, Yugoslavia, with the financial support of the V olkswagen Foundation. According to the outline ofthe program, formulated in 1976 by a committee consisting of Professors Dagfinn F~llesdal, Rudolf Haller (coordinator), Lorenz Kruger, Karel Lambert, Keith Lehrer, Kuno Lorenz, Gunther Patzig, Ivan Supek and Paul Weingartner, its general purpose was to investigate the interplay (...) of various internal and external factors in the development of science. Generous financial support from the Volkswagen Foundation made it possible to plan four annual conferences, the first of which was held in Dubrovnik on March 6-12, 1978. This volume contains the majority of the papers presented in the first Dubrovnik conference; the main theme of this conference was 'Rationality in Science and Ethics' (Some of the papers appear here in a thoroughly revised form. ) Further results of the research program will be discussed in three other conferences, to be held in Dubrovnik in 1979-1981; the papers presented in these conferences will be published separately. Professor Rudolf Haller of the University of Graz assumed the burden of the practical planning and organization of the first conference (as well as that of the other three conferences). I wish to thank Professor Haller on behalf of all participants for carrying out this demanding and time-consuming task. (shrink)

Abstract Our growing demand for meat and dairy food products is unsustainable. It is hard to imagine that this global issue can be solved solely by more efficient technologies. Lowering our meat consumption seems inescapable. Yet, the question is whether modern consumers can be considered as reliable allies to achieve this shift in meat consumption pattern. Is there not a yawning gap between our responsible intentions as citizens and our hedonic desires as consumers? We will argue that consumers can and (...) should be considered as partners that must be involved in realizing new ways of protein consumption that contribute to a more sustainable world. In particular the large food consumer group of flexitarians offer promising opportunities for transforming our meat consumption patterns. We propose a pragmatic approach that explicitly goes beyond the standard suggestion of persuasion strategies and suggests different routes of change, coined sustainability by stealth, moderate involvement, and cultural change respectively. The recognition of more routes of change to a more plant-based diet implies that the ethical debate on meat should not only associate consumer change with rational persuasion strategies and food citizens that instantiate “strong” sustainable consumption. Such a focus narrows the debate on sustainable protein consumption and easily results in disappointment about consumers’ participation. A more wide-ranging concept of ethical consumption can leave the negative verdict behind that consumers are mainly an obstacle for sustainability and lead to a more optimistic view on modern consumers as allies and agents of change. Content Type Journal Article Category Articles Pages 1-18 DOI 10.1007/s10806-011-9345-z Authors Erik de Bakker, LEI Wageningen UR (Agricultural Economics Research Institute), P.O. Box 29703, 2505 LS The Hague, The Netherlands Hans Dagevos, LEI Wageningen UR (Agricultural Economics Research Institute), P.O. Box 29703, 2505 LS The Hague, The Netherlands Journal Journal of Agricultural and Environmental Ethics Online ISSN 1573-322X Print ISSN 1187-7863. (shrink)

Morality, in the context of luxury counterfeit goods, has been widely discussed in existing literature as having a strong association with decreased purchase intention. However, drawing on moral disengagement theory, we argue that individuals are motivated to justify their immoral behaviors through guilt avoidance, thus increasing counterfeit purchase intention. This research demonstrates that consumers’ desire to purchase counterfeit luxuries hinges on two types of moral reasoning strategies: moral rationalization and moral decoupling. The empirical results show that each strategy increases purchase (...) intention, but respectively through moral judgment and perceived benefit. Implications for researchers and managers are discussed. (shrink)

Barbarians at the Gates of the Public Library is a philosophical and historical analysis of how the rise of consumerism has led to the decline of the original mission of public libraries to sustain and promote democracy through civic education. Through a reading of historical figures such as Plato, Helvetius, Rousseau, and John Stuart Mill, the book shows how democracy and even capitalism were originally believed to depend upon the moral and political education that public libraries (and other institutions of (...) rational public discourse) could provide. But as capitalism developed in the 20th century it evolved into a postmodern consumerism that replaced democracy with consumerism and education with entertainment. Public libraries have mistakenly tried to remain relevant by shadowing the rise of consumerism, but have instead contributed to the rise of a new barbarism and the decline of democracy. (shrink)

This paper contributes to the (re-)conceptualisation of responsible innovation by proposing an evolutionary economic approach that focuses on the role of consumers in the innovation process. After a discussion of the philosophical foundations and ethical implications of this approach, which bears an explanatory potential that has not been adequately considered in previous discussions of responsible innovation, we present a first step towards capturing the important but often neglected role of consumers in innovation processes (including responsible innovation): We propose an agent-based (...) model that incorporates a multidimensional space of characteristics in which new products or services are represented by more than the mere aspect of price and quality. Instead, innovations are denoted by a large set of characteristics, including also negative or harmful ones. The model is used to illustrate that consumers’ heterogeneity and bounded rationality – even if considered in a simple manner – indeed play a crucial role in the creation and diffusion of responsible innovation which can and should be used for further work in this field and for possible extensions of the model. (shrink)

Previous studies have shown that people often use heuristics in making inferences and that subjective memory experiences, such as recognition or familiarity of objects, can be valid cues for inferences. So far, many researchers have used the binary choice task in which two objects are presented as alternatives (e.g., “Which city has the larger population, city A or city B?”). However, objects can be presented not only as alternatives but also in a question (e.g., “Which country is city X in, (...) country A or country B?”). In such a situation, people can make inferences based on the relationship between the object in the question and each object given as an alternative. In the present study, we call this type of task a “relationships‐comparison task.” We modeled the three inference strategies that people could apply to solve it (familiarity‐matching [FM; a new heuristic we propose in this study], familiarity heuristic [FH], and knowledge‐based inference [KI]) to examine people's inference processes. Through Studies 1, 2, and 3, we found that (a) people tended to rely on heuristics, and that FM (inferences based on similarity in familiarity between objects) well explained participants' inference patterns; (b) FM could work as an ecologically rational strategy for the relationships–comparison task since it could effectively reflect environmental structures, and that the use of FM could be highly replicable and robust; and (c) people could sometimes use a decision strategy like FM, even in their daily lives (consumer behaviors). The nature of the relationships–comparison task and human cognitive processes is discussed. (shrink)

Commercial genetic testing offered over the internet, known as direct-to-consumer genetic testing (DTC GT), currently is under ethical attack. A common critique aims at the limited validation of the tests as well as the risk of psycho-social stress or adaption of incorrect behavior by users triggered by misleading health information. Here, we examine in detail the specific role of advertising communication of DTC GT companies from a medical ethical perspective. Our argumentative analysis departs from the starting point that DTC (...) GT operates at the intersection of two different contexts: medicine on the one hand and the market on the other. Both fields differ strongly with regard to their standards of communication practices and the underlying normative assumptions regarding autonomy and responsibility. Following a short review of the ethical contexts of medical and commercial communication, we provide case examples for persuasive messages of DTC GT websites and briefly analyze their design with a multi-modal approach to illustrate some of their problematic implications. We observe three main aspects in DTC GT advertising communication: (1) the use of material suggesting medical professional legitimacy as a trust-establishing tool, (2) the suggestion of empowerment as a benefit of using DTC GT services and (3) the narrative of responsibility as a persuasive appeal to a moral self-conception. While strengthening and respecting the autonomy of a patient is the focus in medical communication, specifically genetic counselling, persuasive communication is the normal mode in marketing of consumer goods, presuming an autonomous, rational, independent consumer. This creates tension in the context of DTC GT regarding the expectation and normative assessment of communication strategies. Our analysis can even the ground for a better understanding of ethical problems associated with intersections of medical and commercial communication and point to perspectives of analysis of DTC GT advertising. (shrink)

We describe the results of an experiment on decision making in an insurance context. The experiment was designed to test for the underlying rationality of insurance consumers, where rationality is understood in usual economic terms. In particular, using expected utility as the preference function, we test for positive marginal utility, risk aversion, and decreasing absolute risk aversion, all of which are normal postulates for any microeconomic decision context under uncertainty or risk. We find that there the discrepancy from (...) rational decision making increases with the sophistication of the rationality criteria, that irrationality concerning fair premium contracts is uncharacteristically high, and that the slope of absolute risk aversion seems to depend on the format of the insurance contract. (shrink)

Using panel data from three Canadian provinces, this article examines the relationship between the de-marketing of tobacco products through provincial-level price increases and consumers’ attempts to quit smoking as measured by the uptake of tobacco replacement therapies. We ground our hypotheses in the rational addiction model and the theory of planned behavior. Our analyses suggest a positive, one-month lagged effect of a price increase of tobacco products on the uptake of tobacco replacement therapies. This effect dissipates 3 months later, suggesting (...) that there is a critical period for aggressive de-marketing of tobacco products. We discuss the implications of these results for theory and future research into de-marketing harmful consumer products. (shrink)

Social theories are analytical frameworks or paradigms used to examine social phenomena. The term social theory encompasses ideas about how societies change and develop, about methods of explaining social behaviour, about power and social structure, gender and ethnicity, modernity and civilization, revolutions and utopias. In contemporary social theory, certain core themes take precedence over others, themes such as the nature of social life, the relationship between self and society, the structure of social institutions, the role and possibility of social transformation, (...) as well as themes such as gender, race and class. Interaction between social theory and cultural criticism has also been very prominent in modern culture. In recent decades, renewed investigation of the mean- of high culture' and 'popular culture' in the context of consumer practices and new media technologies has led to a flourishing of academic subdivisions such as cultural studies, film studies, and media and communication studies. Many of the informing theories of these studies are discussed in this Book. Sociological theory is rather an abstract subject, this is not a course about the history of ideas! Rather, it is a critical introduction to the basic concepts and substantive theory of sociology, which focuses on the analysis of issues that are part of your everyday experience -- social relations and how individuals interact with one another, the nature of ideas, culture and how institutions shape our lives. Explorations in Social Theory: From Metatheorising to Rationalization coverage ranges across a broad landscape, from prehistory to contemporary affairs, from treatments of individuals to nations to world culture, from discussions of theory to methodological critique. It raises interesting and pertinent questions about these and other areas. It examines theories and ideas in relation to one another and in relation to the context in which they emerged. It is specifically concerned with examining the development of sociological theory from its beginnings in the philosophy of the Enlightenment and its subsequent development in the work of Marx, Durkheim and Weber to modern sociological theory, including sociological functionalism, interactionism, contemporary Marxism(s), structuralism and post-structuralism, postmodernism and globalisation. The Book will enable you to ask questions and raise issues about the nature of contemporary societies. (shrink)

The rapid popularity of mobile shopping makes people’s lives more convenient, but it also makes it easier for customers to change providers. How to use marketing stimulus to retain customers has become an urgent concern for mobile sales companies. However, the theoretical researches in this field are not enough. For this reason, this study used the methods of literature review and structural equation to explore the effects of mobile marketing design factors on the continual intention of consumers in mobile shopping (...) by using the S-O-R model and its extended theories. The conclusions of the research showed that interface quality of mobile sales terminal and integrity of mobile sales terminal had significant positive impacts on consumption emotion; sales promotion in mobile sales terminal had a significant positive impacts on continual intention of mobile shopping; consumption emotion had a significant positive effect on continual intention of consumers in mobile shopping; consumption emotion played a significant mediating role in the relationship between interface quality of mobile sales terminal and continual intention of mobile shopping and between integrity of mobile sales terminal and continual intention of mobile shopping. The conclusions could not only enrich the theories of mobile shopping behavior but also provide guidance for companies to carry out mobile marketing activities and allocate marketing resources rationally. (shrink)

Aiming at the two-echelon newsvendor problem in which the market demand of commodities is random both in normal sales period and in liquidation period, this paper studies the pricing and ordering decision of retailers by using rational expectation equilibrium under the condition of considering consumersʼ strategic behavior and rapid response mechanism. Then, the decision-making problem under retailersʼ initial order quantity commitment is discussed, as well as the effect of commitment mechanism on supply chain performance. On this basis, both the two-part (...) pricing contract and revenue-sharing contract are introduced to achieve supply chain coordination aiming at the profit maximization under the initial order quantity commitment mechanism. The results show that the rapid response mechanism can reduce the negative impact of consumers’ strategic behavior, and the initial order quantity commitment can further reduce the impact and improve the retailers’ profit. Both the two-part pricing contract and revenue-sharing contract can coordinate the whole supply chain in which the two-part pricing contract can distribute profit arbitrarily between manufacturers and retailers while the revenue-sharing contract can share risks among members of the supply chain. (shrink)

This study adopts moral reasoning strategies to investigate why consumers support companies involved in ethical transgressions. Drawing on several cases of real multinationals publicly involved in tax avoidance practices, it aims to demonstrate that moral rationalization and moral decoupling depend not only on how consumers perceive the magnitude of the transgression, but also on their individual differences, such as political ideology and brand identification. A quantitative study with a sample of 3989 consumers of five different focal brands was employed to (...) test a set of hypotheses. Findings reveal that moral decoupling directly explains purchase intentions. However, rationalization only explains behavioral intentions if it leads to a reduction in the perceived immorality of the action. Furthermore, the study reveals significant differences across personal values. Left-leaning individuals tend to rationalize less and decouple more when they perceive that the magnitude of the transgression as egregious. Interestingly, consumers who are highly identified with the brand are less affected by the transgression and tend to be more supportive toward the brand by engaging in rationalization mechanisms. (shrink)

Human beings as self-conscious, aesthetic, sympathetic, and empathetic beings develop various ways to live in this world. They continue to aspire for a better version of themselves and their lives. In this process, they developed certain ethical norms, social practices, and ways to perceive and understand this world. These qualities become the basis for proactive steps of spirituality which in turn become the foundation of religion. In human history, religion has helped individuals to fulfill various human needs irrespective of their (...) culture. Despite differences in the content of various religious philosophies, mythological structures, and religious ceremonies, it gave a sense of meaning and purpose to human beings. Because of its omnipresence, many philosophers along with biological and cultural evolutionary researchers have suggested coming up with a universal explanation for religion. -/- Nevertheless, religion was also employed as a means of exploitation by the powerful elites in various societies. Thus, many times, it worked as an orthodox, deceptive, and enslaving force for humanity. Modern thought emphasized the later effects of religion and found it less emancipatory. -/- Hence, enlightenment philosophy focused on rationality as a significant aspect of human beings. Besides, the development of science has unfolded various hidden and hitherto mysterious natural phenomena to mankind. This change has brought rationality to the forefront of human existence every institution began to build around this notion of human being. Even the death of God was announced by Nietzsche with grief in 1885. -/- Was it really the death of God? Can human beings live without religion sanely? These questions become very relevant particularly in recent times when we see resurgence of religious identities in the political and social discourses. However, consumer mythology and consumer culture remain at the forefront while making decisions in our daily lives across cultures. Even sometimes, religious identities are absorbed by powerful market forces; how to understand this contradictory phenomenon? -/- Between both these understandings, this paper sets three objectives for itself – first, to analyze the human need for religion from a psychological and existential perspective. Second, it critically evaluates the secular thesis as put forward by European enlightenment thinkers in the light of contemporary consumerist mythology. The third objective involves a brief description of universal religion and its relevance at this time. (shrink)

We need to understand, and on a philosophical level, our consumer mentality. For ours is a consumer society. Yet (pace environmental philosophers) philosophers have had almost nothing to say. This paper is a start toward a normative philosophy of consumption. It explores a distinction which, if viable, has far-reaching implications — the distinction between ownership and what I call “possession.” This distinction marks two different senses in which a good or service can be mine. I argue that an (...) approach to consumption oriented around possession rather than ownership would support the conclusion that there are prudential or self-interested, not only moral or environmental, limits to rational consumption. That would be a very desirable conclusion given that we often exceed these other limits of rational consumption. (shrink)